New York (PRWEB) October 25, 2006
The Energy Hedge Fund Center (EHFC), the only online community focused on energy and environmental alternative investments, reports that, despite the recent highly publicized collapse of a small number of energy hedge funds, such funds continue to grow in size, number and diversity. The EHFC Directory of Energy Hedge Funds currently lists more than 500 energy and energy-related hedge funds.
"Inspection and analysis of our directory shows that there are more than 175 energy and energy-related commodity hedge funds the majority of which are located in North America," reports Dr. Gary M. Vasey, Co-Principal of EHFC. "Interestingly, recent trends suggest more rapid growth of energy commodity funds in Europe, increasing numbers of funds focused on alternative energy and an increase in the number of fund of hedge funds with a high energy component."
The directory highlights some illuminating facts about energy hedge funds. In particular, many commodity funds continue to perform well and continue to attract assets at a rapid pace. A number of commodity funds with less than two-years of track record are now managing more than $1 billion. Additionally, commodity funds seem more popular in Europe where there are twice as many energy commodity funds as equity-focused funds. In North America, there are more than 150 energy equity funds as compared to more then 115 energy commodity-focused funds. Additionally, there are now 24 alternative energy funds listed in the directory and 36 fund of hedge funds. An on-going trend is to pursue ‘hybrid’ strategies that are focused on the energy equity universe but deploy a percentage of capital to energy futures and options. In total, the directory lists 275 energy-specific funds while the remainder are funds that have a high percentage of exposure to energy and energy—related markets.
"Another trend that we have seen develop in energy funds is towards more exotic areas of the business such as weather derivatives, catastrophe bonds, carbon and other emissions, uranium and other metals that have a relationship with energy," Dr. Vasey said. "Metals such as copper, uranium and platinum, for example, all have a relationship to energy and energy industry infrastructure."
"We are continuing to see more green hedge funds launch due to interest in alternative energy and global warming issues. We expect this trend to accelerate in 2007," said Peter Fusaro, Co-Principal, Energy Hedge Fund Center.
The EHFC Directory of Energy Hedge Funds is available by subscription at the Energy Hedge Fund Center (http://www.energyhedgefunds.com). Peter C. Fusaro and Dr. Gary M. Vasey are also the coauthors of ‘Energy and Environmental Hedge Funds – The New Investment Paradigm’ published by John Wiley (2006).
About the Energy Hedge Fund Center LLC
The Energy Hedge Fund Center LLC offers analysis and consulting services in energy and environment. It also provides the only online community tracking alternative investments in energy and environment at http://www.energyhedgefunds.com which offers the directory of energy hedge funds as a subscription service and the popular online newsletter Energy Hedge. For more details contact Dr. Vasey at 646-519-4717.
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